The Nigerian National Petroleum Company (NNPC) Limited has agreed to acquire a 10 per cent equity stake in the NNPCL-Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture for $281.6 million, in a transaction expected to strengthen the national oil company’s position in one of Nigeria’s most strategic offshore assets while boosting shareholder value for Seplat Energy Plc.
The transaction, announced by Seplat Energy on Thursday alongside its unaudited half-year financial results for the period ended June 30, 2026, represents about 25 per cent of Seplat’s acquisition costs to date and is expected to be completed in the second half of the year.
Upon completion, Seplat said the proceeds from the deal would be split equally between a special transaction dividend to shareholders and further debt reduction, with the company projecting total dividends of 68.3 US cents per share ($410 million) for the 2026 financial year.
The equity sale comes as Seplat reported a strong financial performance for the first half of 2026, with profit after tax surging by 498 per cent to $164 million from the corresponding period of 2025.
Revenue rose by 30 per cent year-on-year to $1.82 billion, compared to $1.398 billion recorded in the first half of 2025, while gross profit increased by 68 per cent to $815.9 million from $484.6 million.
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Cash generated from operations climbed 29 per cent to $985.9 million, while adjusted EBITDA rose 28 per cent to $939 million, reflecting improved crude oil prices and stronger operational performance.
Production averaged 139,509 barrels of oil equivalent per day (boepd) during the six-month period, representing a four per cent increase over the 134,492 boepd achieved in the corresponding period of 2025 and remaining within the company’s production guidance of 135,000-155,000 boepd.
Second-quarter production improved further to 149,070 boepd, up nine per cent year-on-year and 15 per cent above first-quarter production.
Seplat attributed the production growth to stronger performance across its onshore assets and continued success of its idle well restoration programme, which added about 26,000 barrels of gross JV production capacity from 24 restored wells during the review period.
Natural Gas Liquids production also more than doubled, with working interest production increasing to 8,459 barrels per day, compared to 3,772 barrels per day recorded in the first half of last year.
The company also reported continued progress on environmental and safety performance, reducing its carbon emissions intensity by 18 per cent year-on-year to 33.5 kilograms of CO₂ per barrel of oil equivalent, while its operated assets recorded 18.8 million man-hours without a Lost Time Injury (LTI).
Financially, Seplat further strengthened its balance sheet by repaying $200 million of its Advanced Payment Facility ahead of schedule, reducing the outstanding balance to $100 million.
Net debt declined by 45 per cent to $370.7 million, while cash at bank increased to $433.8 million, excluding restricted cash of $130.8 million.
The company also announced a quarterly dividend of 12 US cents per share, comprising a core dividend of five cents and a special dividend of seven cents.
Seplat said it plans to pay a total dividend of 45 US cents per share from normal business operations in 2026, representing an 80 per cent increase from the previous year, with an additional 23.3 US cents per share expected from the NNPC transaction, subject to completion.
Commenting on the results, Seplat Energy Chief Executive Officer, Roger Brown, described the company’s first-half performance as one of its strongest, noting that higher commodity prices, disciplined operations and improved production had significantly enhanced cash generation and shareholder returns.
Brown said the agreement with NNPC Limited to divest a 10 per cent interest in the offshore joint venture further demonstrated the quality of the company’s asset portfolio and would create additional value for investors while supporting balance sheet optimisation.
He added that production is expected to increase further in the second half of 2026 as temporary operational constraints are lifted and planned field activities are completed.
The company also confirmed key leadership transitions, with Engr. Effiong Okon set to assume office as Chief Executive Officer on August 1, 2026, succeeding Roger Brown, while Mr. Tony O. Elumelu will become Chairman of the Board on January 1, 2027, replacing Senator Udoma Udo Udoma.
